[Federal Register Volume 88, Number 45 (Wednesday, March 8, 2023)]
[Proposed Rules]
[Pages 14296-14298]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-04741]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
 ========================================================================
 

  Federal Register / Vol. 88, No. 45 / Wednesday, March 8, 2023 / 
Proposed Rules  

[[Page 14296]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 52

[Doc. No. AMS-SC-21-0091, SC-22-326]


United States Standards for Grades of Processed Raisins

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The Agricultural Marketing Service (AMS) proposes to revise 
the United States Standards for Grades of Processed Raisins. AMS is 
proposing to modify two references to the allowances for capstems 
within the standards to modernize the standards to reflect current 
industry practices. The proposal also includes minor editorial changes 
to table headings to align with updated Code of Federal Regulations 
(CFR) formatting requirements.

DATES: Comments must be submitted on or before May 8, 2023.

ADDRESSES: Interested persons are invited to submit comments to the 
Standardization Branch, Specialty Crops Inspection Division, Specialty 
Crops Program, Agricultural Marketing Service, U.S. Department of 
Agriculture, National Training and Development Center; 100 Riverside 
Parkway, Suite 101; Fredericksburg, Virginia 22406; fax: (540) 361-
1199, or via the internet at: https://www.regulations.gov. Comments 
should reference the date and page numbers of this issue of the Federal 
Register. All comments submitted in response to this proposed rule will 
become a part of the public record and be made available to the public 
including any personal information provided at https://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Brian E. Griffin at the address above, 
or at phone (202) 748-2155; fax (540) 361-1199; or email 
[email protected]. Copies of the proposed U.S. Standards for 
Grades of Processed Raisins are available on the internet at https://www.regulations.gov. Copies of the current U.S. Standards for Grades of 
Processed Raisins are available at https://www.ams.usda.gov/grades-standards/fruits.

SUPPLEMENTARY INFORMATION: This proposed action, pursuant to 5 U.S.C. 
553, would amend regulations at 7 CFR part 52 issued under the 
Agricultural Marketing Act of 1946 (7 U.S.C. 1621-1627), as amended. 
These revisions to the U.S. grade standards would also be reflected in 
enforcement of the grade requirements under the Federal marketing 
order, 7 CFR part 989, issued under the Agricultural Marketing 
Agreement Act of 1937 (7 U.S.C. 601-674) which regulates the handling 
of raisins produced from grapes grown in California, and 7 CFR part 
999, which regulates the importation of raisins into the United States.

Executive Orders 12866 and 13563

    The U.S. Department of Agriculture (USDA) is issuing this proposed 
rule in conformance with Executive Orders 12866 and 13563. Executive 
Orders 12866 and 13563 direct agencies to assess all costs and benefits 
of available regulatory alternatives and, if regulation is necessary, 
to select regulatory approaches that maximize net benefits (including 
potential economic, environmental, public health and safety effects, 
distributive impacts, and equity). Executive Order 13563 emphasizes the 
importance of quantifying both costs and benefits, reducing costs, 
harmonizing rules, and promoting flexibility. This proposed action 
falls within a category of regulatory actions that the Office of 
Management and Budget (OMB) has exempted from review under Executive 
Order 12866.

Executive Order 13175

    This proposed rule has been reviewed under E.O. 13175--Consultation 
and Coordination with Indian Tribal Governments, which requires 
agencies to consider whether their rulemaking actions would have tribal 
implications.
    AMS has determined that this proposed rule is unlikely to have 
substantial direct effects on one or more Indian tribes, on the 
relationship between the Federal Government and Indian tribes, or on 
the distribution of power and responsibilities between the Federal 
Government and Indian tribes.

Executive Order 12988

    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This proposed action is not intended to have 
retroactive effect. There are no administrative procedures that must be 
exhausted prior to any judicial challenge to the provisions of this 
rule.

Background

    AMS continually reviews all fruit and vegetable grade standards to 
ensure their usefulness to the industry, and to modernize language and 
remove duplicative terminology. Changes to the headings for all tables 
within the U.S. Standards for Grades of Processed Raisins are required 
to reflect current CFR formatting requirements. Conforming changes to 
cross references to those tables within the standards are also 
proposed.
    On October 13, 2017, AMS received a petition from the Raisin 
Administrative Committee (RAC), which locally administers the Federal 
marketing order regulating the handling of raisins produced from grapes 
grown in California (7 CFR part 989). The petition requested that AMS 
reduce the number of allowable capstems for all varietals, except Zante 
Currants, in all three Grades (A, B, and C) as follows: for Type I, 
Seedless Raisins and Type II, Golden Seedless Raisins the allowances 
for capstems would change in Grade A, from 15 to 10, in Grade B from 25 
to 15, and in Grade C from 35 to 20. For Sultana Raisins the allowances 
for capstems would change in Grade A from 25 to 10, in Grade B from 45 
to 15, and in Grade C from 65 to 20. The RAC further stated that, since 
1978, the industry has adopted major improvements, including laser 
sorters, x-rays, and super vacuums, which allow the industry to clean 
and sort with far superior results that ultimately exceed the current 
U.S. Standards for Grades of Processed Raisins.
    Prior to developing proposed revisions to these grade standards, 
AMS solicited comments and suggestions from the RAC in the form of a 
discussion draft of the revised standards. On December 20, 2017, the 
RAC provided a positive response to the discussion draft.

[[Page 14297]]

    The AMS Agricultural Analytics Division helped develop a study to 
compare USDA inspection results for capstems for a specified period of 
time with those that would be obtained under the proposed changes 
submitted by the RAC based on data collected from AMS offices. The date 
range for the study was from October 4, 2016, to August 15, 2019, 
encompassing a total of 28,059 inspection results of all varietals, 
except Zante Currants, of both domestically produced raisins and 
imported raisins. AMS received the final report from the Agricultural 
Analytics Division on May 26, 2020. The report indicates that only 
1.03% of all inspections--for both domestic and imported raisins--
during the study's date range would result in raisins grading 
differently under the proposed capstem allowances than they did under 
the current allowances, leaving a full 98.97% of lots of raisins 
inspected unchanged in their classification. See Report on Changing 
Capstem Allowances as supporting documentation to this notice.
    Aware of the potential international implications that could result 
from tightening the allowances for capstems, the AMS International 
Standards Coordinator engaged with the Codex Committee on Processed 
Fruits and Vegetables regarding the draft revised standard for raisins 
to mitigate any opposition on the pending proposal. To gauge reaction 
to proposed changes in the U.S. Standards for Grades of Processed 
Raisins, AMS also contacted the United Nations Economic Commission for 
Europe's (UNECE) largest member countries that produce raisins; Turkey; 
Germany, Europe's largest importer and consumer of raisins and dean of 
the European Union standardization sector; and the International Nut 
and Dried Fruit Council (INC), the largest international dry produce 
(fruits and nuts) member organization. SCI reached out in July 2020 and 
heard responses from October 2020 to February 2021 and ultimately made 
the decision to continue forward. While there was not consensus on the 
changes, which is not uncommon, with the AMS Agricultural Analytics 
Division finding that only slightly more than 1% of recent raisin 
inspections would result in a change of grade under the proposed rule, 
AMS does not expect the proposal to be overly burdensome on the 
international market, if enacted. Furthermore, the RAC believes that 
reducing the amount of allowable capstems would incentivize the use of 
the improved, modern technologies available to the industry. As the RAC 
also has stated that reduction in the amount of allowable capstems 
would result in a safer and better product for consumers, AMS is moving 
forward with this proposed rule to elicit comments from stakeholders 
concerning the proposal's efficacy.
    A 60-day comment period is provided for interested persons to 
submit comments on the proposed revised grade standards. Copies of the 
proposed revised standards are at https://www.regulations.gov. After 
the 60-day comment period, AMS will move forward in accordance with 7 
CFR 36.3 (a) (1 through 3).

Initial Regulatory Flexibility Analysis

    Pursuant to the requirements set forth in the Regulatory 
Flexibility Act (RFA), AMS has considered the economic impact of this 
action on small entities. Accordingly, AMS has prepared this initial 
regulatory flexibility analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions so that small businesses will not be 
unduly or disproportionately burdened.
    According to the industry, there are approximately 2,000 raisin 
growers in California. According to the National Agricultural 
Statistics Service, for the 2020/21 season, the total value of 
production for raisin grapes was $353,200,000. Taking the total value 
of production for raisins and dividing it by the total number of raisin 
growers provides a return per grower of $176,600. A small grower as 
defined by the Small Business Administration (SBA) (13 CFR 121.201) is 
one that grosses $3,500,000 or less, annually. Therefore, most raisin 
producers are considered small entities under SBA's standards.
    According to the industry, for the 2020/21 season there are 22 
handlers. A small agricultural service firm as defined by the SBA is 
one that grosses $30,000,000 or less, annually. Based on the annual 
NASS handler report, for the 2020/21 season, 242,427 tons of raisins 
have been transferred to handlers for packing and shipment as of August 
31, 2021. The average grower price for raisins, for the 2020 crop, was 
$1,191 per ton. A reasonable assumption is that handlers would sell at 
a 10 percent markup over the grower price, resulting in a selling price 
of approximately $1,310 per ton. Multiplying the handler's selling 
price per ton by the total number of packed tons shipped during the 
2020 season provides a gross revenue of $317,579,370. Dividing the 
total revenue by the number of handlers reveals an average revenue per 
handler of $14,435,425. A small agricultural service firm as defined by 
the SBA is one that grosses $30,000,000 or less, annually. Based on the 
calculations above, the majority of raisin handlers are considered 
small entities under SBA's standards. This action should not have any 
impact on handlers' or growers' benefits or costs.

List of Subjects in 7 CFR Part 52

    Administrative practice, Fees, Food grades and standards, Food 
labeling, Frozen foods, Fruit juices, Fruits, Reporting and 
recordkeeping requirements, Vegetables.

    For reasons set forth in the preamble, the Agricultural Marketing 
Service proposes to amend 7 CFR part 52 as follows:

PART 52--PROCESSED FRUITS AND VEGETABLES, PROCESSED PRODUCTS 
THEREOF, AND CERTAIN OTHER PROCESSED FOOD PRODUCTS

0
1. The authority citation for part 52 continues to read as follows:

    Authority:  7 U.S.C. 1621--1627.

0
2. Amend Sec.  52.1846 by:
0
a. Removing, in paragraphs (a), (b), and (c) the words ``Table I of 
this subpart'' and adding in their places the words ``Table 1 to this 
section''; and
0
b. Revising, in the table following paragraph (d), the heading and the 
entry for capstems.
    The revisions read as follows:


Sec.  52.1846  Grades of seedless raisins.

* * * * *

   Table 1 to Sec.   52.1846--Allowances for Defects in Type I, Seedless Raisins and Type II, Golden Seedless
                                                     Raisins
----------------------------------------------------------------------------------------------------------------
                             Defects                               U.S. Grade A    U.S. Grade B    U.S. Grade C
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
                                                                           Maximum count (per 16 ounces)

[[Page 14298]]

 
Capstems........................................................              10              15              20
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------

Sec.  52.1849  [Amended]

0
3. Amend Sec.  52.1849 by removing the words ``Table I'' and adding in 
their place the words ``Table 1 to Sec.  52.1846''.


Sec.  52.1852  [Amended]

0
4. Amend Sec.  52.1852 by:
0
a. Removing, in paragraphs (a), (b), and (c), the words ``Table II of 
this subpart'' and adding in their places the words ``Table 1 to this 
section''; and
0
b. Revising the heading of the table following paragraph (d) to read 
``Table 1 to Sec.  52.1852--Allowances for Defects in Raisins with 
Seeds--Except Layer or Cluster''.


Sec.  52.1853  [Amended]

0
5. Amend Sec.  52.1853 by:
0
a. Removing, in paragraphs (a) and (b), the words ``Table III of this 
subpart'' and adding in their place the words ``Table 1 to this 
section''; and
0
b. Revising the heading of the table following paragraph (c) to read 
``Table 1 to Sec.  52.1853--Allowances for Defects in Layer or Cluster 
Raisins with Seeds''.
0
6. Amend Sec.  52.1855 by:
0
a. Removing, in paragraphs (a), (b), and (c), the words ``Table IV of 
this subpart'' and adding in their places the words ``Table 1 to this 
section''; and
0
b. Revising, in the table following paragraph (b), the heading and the 
entry for capstems.
    The revisions read as follows:


Sec.  52.1855  Grades of Sultana raisins.

* * * * *

                      Table 1 to Sec.   52.1855--Allowances for Defects in Sultana Raisins
----------------------------------------------------------------------------------------------------------------
                             Defects                               U.S. Grade A    U.S. Grade B    U.S. Grade C
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
                                                                           Maximum count (per 16 ounces)
Capstems........................................................              10              15              20
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------

Sec.  52.1857  [Amended]

0
7. Amend Sec.  52.1857 by:
0
a. Removing in paragraphs (a) and (b) the words ``Table V of this 
subpart'' and adding in their places the words ``Table 1 to this 
section''; and
0
b. Revising the heading of the table following paragraph (a) to read 
``Table 1 to Sec.  52.1857--Allowances for Defects in Zante Currant 
Raisins''.

Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2023-04741 Filed 3-7-23; 8:45 am]
BILLING CODE 3410-02-P